1.

Pickat least 2 goods and using the law of supply and demand, explain how Covid-19 affects the
buyers, sellers, and then economy.

covid increases the demand of customers to buy face masks, thereby a higher
quatity of products sold while the supply of face masks remains unchanged. As a
result, prices rise, sales and profits of sellers increase, while buyers' finanical
spending increases. The economy is not depressed because when the supply meets
the demand,even it leads to a shortage of goods. When price < equilibrium price,
then quantity demanded > the quantity supplied. There is excess demand or a
shortage. Suppliers will raise the price due to too many buyers chasing too few
goods, thereby moving toward equilibrium.

covid reduces the demand of customers to buy gasoline thereby a lower quantity of
products sold while the supply of gasoline remains unchanged. As a result, prices fall,
sales and profits decline, and buyers' financial spending decreases due to restrictions
on the road. The economy is depressed because when the supply does not meet the
demand, it leads to a surplus of goods. When price > equilibrium price, then quantity
supplied > quantity demanded. There is excess supply or a surplus. Suppliers will
lower the price to increase sales, thereby moving toward equilibrium.

covid increases the demand of customers to buy noodles substantially thus a higher
quatity of products sold while the supply decreases a little. As a result, prices
increase, sales and profits increase, and buyers' finanical spending increases. The
economy is not depressed because when supply meets demand. When price <
equilibrium price, then quantity demanded > the quantity supplied. There is excess
demand or a shortage. Suppliers will raise the price due to too many buyers chasing
too few goods, thereby moving toward equilibrium

covid increases slightly the demand of

customers to buy soft drinks, thereby
a lower of products sold while the supply
decreases substantially. Therefore, prices increase, sales and profits of sellers
increase, while the demand for spending of buyers increases slightly. The economy is
not depressed because supply meets demand. When price < equilibrium price, then
quantity demanded > the quantity supplied.
There is excess demand or a shortage. Suppliers will raise the price due to too many
buyers chasing too few goods, thereby moving toward equilibrium

2. Which sector that you think would be a good investment during Covid-19?
I think FMCG sector would be a good investment during covid 19. Because the
nationwide lockdown and supply chain challenges created panic among consumers in
2020, especially concerning essential commodities. As the second wave doesn’t seem to
subside anytime soon, consumers might begin over-stocking essential products and
consumer staples. The existing uncertainty around the future of the second wave may
cause an uptick in spending by consumers on essentials which will boost sales of FMCG
companies.